Summarised Notes on Marketing

Resource Description

Role of Marketing

Strategic Role of Marketing Goods & Services

Marketing is the total process, by which a business or an organisation plans, produces, prices, promotes and distributes a
product to the consumer. Remember: Strategic refers to long term goals for the whole business.
Marketing plays an important role within a business/ firm and also has an impact on society:
Firm Society

Profit Maximization Brand Awareness
Helps set direction for firms Subsidizes some services (Facebook)
Interdependence with Other Key Business Functions
Operations and Marketing
• In every business, operations of a business often translate into the basis for the marketing campaign. A product generally
has one key distinguisher from others. This is important for the business as the marketing must be a true reflection of the
general advantages of the product.
Finance and Marketing
• Any decision in marketing e.g. developing a new product will requires finances from to be dispensed (research, making
prototypes etc.). Failed marketing efforts can lead to loss of money therefore financial implications for other departments.
Some marketing campaigns are far greater than others i.e. Holden’s Billion Dollar Baby campaign. In these cases,
businesses must reserve finances for special instances.
Human Resources and Marketing
• HR + Marketing managers need to work together to ensure effective staffing (e.g. Skills and experience). HR are
responsible for marketing concepts and creating ways to sell the product to consumers.
Louis Bannon Year 12 Business Studies

1

Role of Marketing
• Strategic role of marketing goods and services
• Production approach, selling approach, marketing approach
• Types of markets – resource, intermediate, industrial, mass, consumer, niche
• Interdependence with other key business function

Production | Selling | Marketing Approaches
1820-1920 Production Approach (Take Orders & Deliver Goods) – Industrial Revolution (product oriented)
1920-1960 Sales Approach (Advertising & Personal Selling) – High Quantity, Mass produced products

– Advertising first used
1960-1989 (MK) Approach (aimed to satisfy customer) – Market Research was conducted

– Customer oriented, marketing plans established
1980-Present (MK) Approach- Stage 2 Societal Approach – Environmental concern (Resource Depletion),

social responsibility
– External Forces & Customer attitudes
considered

Production
• In the production approach there is a focus on the strengths of the business rather than the customer thus the
business will work at making the products that it makes best.It suggests that consumers will favour products that are
easily available, improved quality and highly affordable. Henry Ford followed this approach. Because of increased
competition in the market place, the production approach is not viable today.
Selling
It considers the skills of selling to be the most important task of marketing. The business will make a product it is good at
making and then use a promotional campaign to sell the product. In the 50’s RJ Reenroll ds, makers of Winston
cigarettes used this approach to sell it products.
Marketing
• This approach is customer focused. Focus on satisfying consumer needs and wants by offering products that meet
those needs. Changing economic and social conditions over the last three decades have seen a modification to the
marketing approach. Consumers are expecting business to be involved with CSR.
Types of Markets
Resource
• These markets consist of those individuals or groups that are engaged in all forms of primary production, including
mining, agriculture, forestry and fishing. They produce things by growing and extracting them from the earth.
• These businesses buy goods and services that they need to produce these goods, such as tools, equipment,
chemicals etc.
Industrial
• The industrial market includes industries and businesses that purchase products to use in the production of other
products or in their daily operations. E.g. LG buys metals to produce LCD and plasma TV’s.
Intermediate
• These are markets in which products are sold to companies that then sell the products to other customers. It consists
of wholesalers & retailers who buy finished products and resell them to make a profit. E.g. David Jones sells Boss
• Wholesalers resell finished products to other businesses -> Retailers sell the finished product to consumers.